Stock Analysis

Analysts Expect Bigblu Broadband plc (LON:BBB) To Breakeven Soon

AIM:BBB
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We feel now is a pretty good time to analyse Bigblu Broadband plc's (LON:BBB) business as it appears the company may be on the cusp of a considerable accomplishment. Bigblu Broadband plc provides satellite, and wireless broadband telecommunications and related products and services in Australia and the Nordics. The company’s loss has recently broadened since it announced a UK£1.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of UK£1.8m, moving it further away from breakeven. Many investors are wondering about the rate at which Bigblu Broadband will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Bigblu Broadband

Bigblu Broadband is bordering on breakeven, according to some British Telecom analysts. They expect the company to post a final loss in 2021, before turning a profit of UK£900k in 2022. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 151%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
AIM:BBB Earnings Per Share Growth September 25th 2022

Underlying developments driving Bigblu Broadband's growth isn’t the focus of this broad overview, but, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. Bigblu Broadband currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Bigblu Broadband which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Bigblu Broadband, take a look at Bigblu Broadband's company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:

  1. Valuation: What is Bigblu Broadband worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Bigblu Broadband is currently mispriced by the market.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bigblu Broadband’s board and the CEO’s background.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Valuation is complex, but we're here to simplify it.

Discover if Bigblu Broadband might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.